Saks Global Files for Chapter 11 Amid Financial Challenges and Restructuring Plans
Saks Global, the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection on January 14. The filing, made in the U.S. Bankruptcy Court for the Southern District of Texas, follows a period of significant financial challenges.
A primary factor cited was a substantial debt load stemming from its 2024 acquisition of Neiman Marcus. The company has secured bankruptcy financing and unveiled a restructuring plan. This plan includes extensive store closures for its off-price brands, Saks Off 5th and Last Call, alongside multiple leadership transitions.
Saks Global, the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection on January 14.
Formation and Early Financial Actions
Saks Global was established in July 2024, following Hudson's Bay Company (HBC)'s acquisition of Neiman Marcus for $2.65 billion. HBC, the parent company of Saks Fifth Avenue, created Saks Global to consolidate luxury retail chains including Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman. The stated objective was to enhance competitiveness against other retailers, negotiate better terms with brands, and attract shoppers.
In August 2024, Saks Global completed a $600 million notes offering to enhance liquidity, with a debt restructuring also planned for August 2025.
As part of the Neiman Marcus acquisition in December 2024, Amazon invested $475 million in Saks Global. This investment was contingent on Saks selling its products on Amazon's website and Amazon providing technology and logistics support. Saks subsequently launched a "Saks at Amazon" storefront and reportedly agreed to pay referral fees, guaranteeing at least $900 million to Amazon over eight years. Salesforce also became a minority shareholder in Saks during this period.
Leadership Transitions
In early January 2026, Marc Metrick, who had been with Saks since 1995 and served as CEO of Saks Global since its formation in 2024, resigned from his position. The company stated his departure was to pursue new professional opportunities. Richard Baker, who held the role of Executive Chairman, was appointed Chief Executive Officer concurrently with his existing role.
Less than two weeks after his appointment, Richard Baker stepped down as CEO. Following the bankruptcy filing on January 14, Geoffroy van Raemdonck, formerly the chief of Neiman Marcus, assumed the CEO role for the duration of the bankruptcy proceedings.
Financial Challenges and Bankruptcy Filing
Reports of Saks Global preparing for bankruptcy emerged following a missed debt payment, reportedly exceeding $100 million, related to its 2024 acquisition of Neiman Marcus.
Reports of Saks Global preparing for bankruptcy emerged following a missed debt payment, reportedly exceeding $100 million, related to its 2024 acquisition of Neiman Marcus. This occurred after the company had undertaken measures to generate capital, including the recent sale of Neiman Marcus' Beverly Hills flagship property.
On January 14, 2026, Saks Global officially filed for Chapter 11 bankruptcy protection. The company cited a significant debt load and shifts in the retail landscape, including increased competition and changing consumer behaviors. The filing marked the first major retailer bankruptcy of 2026.
Bankruptcy Financing and Legal Challenges
Saks Global announced that its voluntary Chapter 11 cases were initiated with support from key financial stakeholders. The company secured $1 billion in debtor-in-possession (DIP) financing to fund its operations and turnaround initiatives. An additional $500 million in financing was agreed upon by a bondholder group for the company's emergence from bankruptcy. During a U.S. Bankruptcy Court hearing in Houston, Judge Alfredo Perez authorized Saks to access $1.75 billion in new bankruptcy financing, citing potential immediate liquidation without it.
Amazon, an investor in the 2024 acquisition, requested a federal judge to reject Saks Global's bankruptcy financing plan. Amazon stated in court documents that Saks Global "burned through hundreds of millions of dollars in less than a year" and failed to uphold a previous agreement, leading to accumulated unpaid invoices and its equity investment becoming "presumptively worthless." Amazon argued the proposed financing plan adversely affects Amazon and other creditors by burdening parts of the corporation with new debt, which could reduce recovery from the proceedings. A ruling on Amazon's specific request remained pending.
Restructuring and Store Closures
As part of its bankruptcy restructuring, Saks Global announced the closure of most of its discount retail locations.
As part of its bankruptcy restructuring, Saks Global announced the closure of most of its discount retail locations. Approximately 60 Saks Off 5th stores and all five Last Call storefronts are scheduled to be shuttered. Twelve Saks Off 5th locations are expected to remain operational, primarily functioning as a sales channel for excess inventory from the luxury brands. This strategic shift aims to concentrate on full-price luxury retail offerings, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
Closing sales for select Saks Off 5th stores and all Last Call locations are scheduled to commence on January 31. The Saks Off 5th website was slated to initiate its closing sale on January 30. Existing gift cards will be honored until February 14 for in-store purchases and February 13 for online transactions. Twenty-three Saks Off 5th stores are scheduled to close on February 2, with the remaining 34 closing in subsequent weeks. The 12 continuing Saks Off 5th stores are located in New York, Florida, New Jersey, Georgia, California, and Texas.
Market Context
The company's financial challenges and restructuring occur within a broader market context. A November Bain & Co. study projected a second consecutive year of contraction for global sales of luxury goods in 2026.
A November Bain & Co. study projected a second consecutive year of contraction for global sales of luxury goods in 2026.
Factors cited include consumer responses to price adjustments, broader global economic anxieties, a decline in demand from Chinese consumers, and evolving preferences among younger shoppers. Consumer skepticism towards traditional luxury department stores and an increasing trend of purchasing goods directly from brands have also been observed.